Why employee mentoring and induction is critical in SMEs
Oct 21, 2014, 03.36PM IST
Very often SMEs find it difficult to extract high powered performance from their employees, many of whom join in from another SME and sometimes even from larger companies. However, that does not mean that work that the employees in an SME are expected to do is below-par. On the contrary, employees in a smaller company are usually expected to shoulder a great breadth of responsibility, which is typically more complex to perform as opposed to a typical specialized, system driven functional specialization in a larger company.
How do you then ensure that a typical new SME employee can quickly pick up threads and start running at good speed post joining? There are a few critical things that could be done to properly induct such an employee so he or she hits the ground running.
Identifying And Filling The Skill Gaps Among SMEs
Oct 20, 2014
Very often SMEs grow very fast and scale up without fully appreciating the opportunities in the broader market and the requirements therein to successfully build sales and manage risks.
Many organizations realize a bit too late that they should have brought in a certain skill set before embarking on a certain path and end up burning substantial cash on unprofitable or risky ventures. Understanding the market properly and the necessary organizational re-skilling usually requires a little bit of upfront investment, but can lead to significant benefits subsequently. However many companies are often hesitant to commit these miniscule resources upfront.
How India-Japan tie up will fuel strategic growth for SMEs
Oct 01, 2014
Narendra Modi’s five day visit to Japan has been very successful in terms of taking strategic and economic cooperation between the two countries to a new level. Japan agreed to provide $35 billion to India over the next 5 years for various developmental projects in areas like clean energy, healthcare, roads, railways and highways, building smart cities, etc. Huge foreign investment will eventually bring India’s manufacturing industry on a global map making the country’s business environment friendlier, economic environment conducive for growth, generating employment opportunities, and creating level-playing field for Indian SMEs.
Viren Malhotra’s take on the Union Budget
Budget 2014: IT Industry Reacts With Cautious Optimism
10 Jul, 2014
Provision of investment allowance at 15% for 3 years to manufacturing companies that invest over Rs. 25 Crore in setting up plants and machinery, is again a good move. The FM has managed to catch the pulse of this sector to some extent and it can prove to be significant impetus especially to SMEs. So is the highlight of setting up a Committee for enhanced credit for SMEs which will have to give its suggestions in 3 months. Setting aside a Rural Credit fund of Rs. 50,000 Crore could help build better communities and create a sense of independence and entrepreneurship within those groups. We appreciate the allocation of a Rs. 10,000 Crore fund exclusively to provide risk capital for the start-up community. This along with the likely setting up of an Efficient Bankruptcy Program for easier exits for SMEs would surely be beneficial for set-up and closure of businesses.
SMEs will look at Budget 2014 to improve investor sentiment
3 Jul, 2014, 02.00PM IST
Small and medium enterprises (SMEs) have been the backbone of the Indian economy and the last few years have been extremely tough on the SME industry due to flagging demand and investor sentiment. Most of these small companies, as a result, need a growth stimulus. With the take-over by the NDA at the Centre and its pro-business attitude, expectations are high and accordingly the budget ought to focus on improving investor sentiment, demand revival and easier availability of credit to SMEs.
Impact of company act 2013 on India SMEs
SME EPCs in infrastructure : Are you managing your risks?
Jun 16, 2014, 03.44PM IST
With the new government taking over at the Centre and the reforms proposed, expectations from the infrastructure sector are now high for early and definitive actions to undo the tough times. Innovative initiatives are expected to hasten the infrastructure project approval process and if focused government initiatives and reforms are introduced in oil & gas, river-cleaning and the coal sector, we could possibly witness much better times for the infrastructure sector. This will definitely improve profitability, cash and order flow for engineering, procurement, construction (EPC) contractors and also offer them greater opportunities than ever before.
Encountering Growth Challenges for SME’s
A passionate collective with dreams to create something out of nothing! – That is how an SME journey begins. The first few years are gut – wrenching where the entrepreneur dons numerous hats: that of a salesman, product expert, admin and HR. This initial “Jack of all trades” phase is tough but satisfying. The reward is a clutch of good customers, extremely loyal employees and strong domain couples with product knowledge. The organization at this stage however is unstructured, degree of specialization is high in terms of product/customer niches yet low in organization procedures. The staff is motivated and happy but in a cocoon, unaware of the outside possibilities. The public profile of the organization is either missing or limited.
Encountering Growth Challenges for SME’s
How SMEs Can Scale Up their Business
May 30, 2014
SMEs in India are often set up by first generation entrepreneurs or by younger breakaways from traditional business families. These organizations are typically characterized by promoters having a deep knowledge of their core business but little exposure beyond.
Many of these entrepreneurs therefore make mistakes and often struggle to grow beyond a certain scale, i.e. SMEs in brand led businesses often pay inadequate attention to selling, advertising and branding; SMEs in Engineering Projects businesses may not focus enough on risk management; while organizations in bulk production led businesses may not control costs enough with inadequate production planning.
These are all critical, life threatening mistakes and unless corrected, would make it very difficult for the organization to prosper and grow. The other mistake very common among most SME promoters is to make their organization severely dependent upon themselves, thus exposing it to the risk of fading away once the entrepreneur decides to call it a day.
Key Challenges for SMEs in Indian Home Furnishings Sector
Tuesday, May 20, 2014
Our Indian home furnishing manufacturers are heavily geared towards meeting the international home furnishings demand and we have established firm ground in the international arena. We do have our strengths. If one were to compare other exporters such as China and Pakistan, we contribute a larger share and are the only major net cotton exporter and thus have a major cost advantage over this key raw material. India is also a lower wage operation and is stronger on creative aesthetics as compared to players like China.
While India does suffer from infrastructural bottlenecks vis-a-vis its larger number, countries such as Pakistan and Bangladesh, having lower wage rates than India, often experience severe power outages (as in Pakistan) or have concerns over workers/fire safety (as in Bangladesh). India has been able to capitalize on some of these strengths, and has witnessed strong growth in exports, particularly over the last few years, by Indian home furnishing manufacturers (aided in no small measure by a weak rupee in 2013-14).
Turnover Specialist can help SMEs grow: Viren Malhotra
25 Mar, 2014
All small and medium enterprises (SMEs) that want to grow, require the Promoter to let go and effectively delegate to his/ her managers – this usually is very difficult. And a turnover specialist like a mentor can help cultivate such qualities, a Turnover Specialist, Viren Malhotra told SME Times in an exclusive interview.
Sir, you are a Turnover Specialist. What exactly a Turnover Specialist do?
Viren Malhotra: My key skills lie in helping SMEs grow and scale up. Having advised large international companies while working with the world’s largest consulting firms, I have had the opportunity to understand what some of the issues are that need to be effectively tackled to achieve sustainable growth. I apply these learning’s for the benefit of my SME clients and assist in their growth.